CME Group Inc (NASDAQ:CME) investors: pay attention.
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Equally as crucial, positive insider trading activity is another way to look at the financial markets. There are lots of motivations for an insider to downsize shares of his or her company, but only one, very obvious reason why they would behave bullishly. Many academic studies have demonstrated the impressive potential of this method if piggybackers know what to do (learn more here).
Furthermore, we're going to analyze the latest info surrounding CME Group Inc (NASDAQ:CME).
At the end of the second quarter, a total of 40 of the hedge funds we track were long in this stock, a change of 33% from the previous quarter. With hedgies' positions undergoing their usual ebb and flow, there exists an "upper tier" of key hedge fund managers who were upping their holdings meaningfully.
As industrywide interest increased, specific money managers have been driving this bullishness. Lone Pine Capital, managed by Stephen Mandel, established the most outsized position in CME Group Inc (NASDAQ:CME). Lone Pine Capital had 296.1 million invested in the company at the end of the quarter. Stephen Mandel's Lone Pine Capital also made a $151.9 million investment in the stock during the quarter. The other funds with brand new CME positions are Patrick Degorce's Theleme Partners, Ken Griffin's Citadel Investment Group, and David Stemerman's Conatus Capital Management.
Bullish insider trading is at its handiest when the company we're looking at has seen transactions within the past half-year. Over the latest six-month time period, CME Group Inc (NASDAQ:CME) has seen 1 unique insiders purchasing, and 11 insider sales (see the details of insider trades here).
We'll also take a look at the relationship between both of these indicators in other stocks similar to CME Group Inc (NASDAQ:CME). These stocks are LPL Financial Holdings Inc (NASDAQ:LPLA), Morgan Stanley (NYSE:MS), TD Ameritrade Holding Corp. (NYSE:AMTD), Nomura Holdings, Inc. (ADR) (NYSE:NMR), and Charles Schwab Corp (NYSE:SCHW). This group of stocks belong to the investment brokerage - national industry and their market caps are closest to CME's market cap.